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my grandad is 82 and selling his house to move into sheltered accomodation

may yada yada
by may yada yada 14 June 2012  |  Comments 1 comment  |  Love Love  0 loves

He plans on splitting the money between his children and grandchildren. He will not receive any benefits and has enough money to live comfortably and be able to pay all his bills without any problems. A friend told me that he has to keep the money from the house for 7 years after it sells in case he needs to go into a nursing home. Is this correct? I should add that although he is 82 he very fit and healthy but cannot manage the house and the garden like he used to hence the move into sheltered accomodation. Any advice would be grately appreciated.

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Comments (1)

  • MikeGG1
    Love rating 879
    MikeGG1 posted

    There is no specific period. He would need to be able to prove that he did not foresee any need for the capital raised in the house sale. That would include not needing the interest that it would earn.

    However, it could be argued that at 82 he had a potential need for a nursing home.

    The local authority could have the transfers set aside, so the money would need to be retained in reserve in case they do. It wouldn't be necessary for him to retain it so long as the beneficiaries did.

    7 years is the period for Potentially Exempt Transfers to be free of Capital Gains Tax, which is a completely different matter. That would only be needed if his total estate would be more than £325,000 or £650,000 jointly with his wife if she has died recently.

    Mike

    Posted on 14 June 2012 | Love Love  0 loves Report

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